Bitcoin fell below $77,000 Monday for the first time since May 1, shedding $1,600 in hours and erasing more than $32 billion from its market cap. The sell-off wiped out $551.68 million in long positions over the same window, according to CoinGlass data. Ethereum dropped below $2,100 in the same move, per BlockBeats.
Last Friday’s sell-off liquidated more than $580 million in leveraged crypto positions over 24 hours — roughly 95% of it long bets on higher prices, per CoinDesk.
The sell-off is not crypto-specific. Hotter-than-expected US CPI and PPI readings last week led traders to abandon expectations of a Fed rate cut entirely and price in the possibility of a hike before year-end. The US 10-year Treasury yield climbed to 4.63% Monday, its highest since February 2025. The 30-year crossed 5.1% for the first time since 2007. UK 10-year gilt yields reached 5.2%, a level last seen in 2008.
Related: The Iran War’s Hidden Bill: 30-Year Treasury Yields Hit 5% for the First Time Since 2007
Oil extended the pressure. WTI crude topped $100 per barrel and Brent reached approximately $109 after President Donald Trump warned Iran to “get moving” or face consequences, departing China without progress on ending the war or reopening the Strait of Hormuz.
On Friday, the Nasdaq fell roughly 1.5% and the S&P 500 dropped about 1.2% — the worst single session for US stocks since March. Gold declined roughly 2.6% to near $4,560.
As Bitcoin slid from above $82,000 toward $78,000 last week, exchanges began force-closing leveraged long positions that could no longer meet margin requirements. Each round of forced selling drove prices lower and triggered further margin calls. Coinalyze data showed Bitcoin open interest fell from above $27 billion to roughly $25.5 billion across that period. Monday’s drop below $77,000 pushed the deleveraging into a new week.
Bitcoin perpetual futures had been running negative funding rates for weeks — an indicator of heavy short positioning that primed the market for violent, accelerated unwinds whenever prices moved against that crowd.
Monday’s crash fits a pattern of leverage-driven wipeouts that has defined 2026. On May 8, a similar sell-off liquidated $253 million in long positions in 24 hours. On April 13, total futures liquidations reached $406 million. The year’s largest single event was on January 20, when exchanges forced-closed positions belonging to more than 182,000 traders, resulting in combined losses exceeding $1.08 billion.
Bitmine chairman Tom Lee has identified $76,000 as the threshold that would confirm the end of the bull market — a level the asset has not yet broken.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
